Viscose prices have more slightly dropped than cotton and polyester prices in the past two weeks in China, having previously tumbled over a high level of excess inventories. Viscose yarn prices have been however lowered in the past days due to a lack of demand.
Viscose staple fiber prices have continued dropping in the last seven days in China, although less significantly than cotton or polyester.
The benchmark 1.5D VSF indicator has lost 100 yuan per metric ton at 11,700 yuan.
Prices have already declined 700 yuan or 5.6% in only four weeks, however.
This new decrease is in line with the sharp fall of viscose prices after they have reached a peak by early 2017.
In about two-and-a-half years, VSF has lost 40% and has eventually returned back to its level 5 years ago.
A sharp rise of capacities has by far exceeded the steady increase of viscose use in China, eventually resulting in excess production and inventories.
Prices had previously surged over new environmental rules having resulted in a stabilization of capacities after oldest and smallest plants had been shut down.
With cotton and polyester now declining, viscose fiber producers could be further pressured by rival fibers.
On the other hand, material costs of viscose producers are far from falling and they could eventually lower their operating rates for supporting prices.
Source: Emergingtextiles
